Bethlehem Tenants Protest 22% Rent Increase

Tenants of Bethlehem Townhouses I met last night to review a proposed 22- percent rent increase that would raise rents in the low- and moderate- income housing complex by $62 to $63 per month.

Tenants of the complex claim that the "exorbitant increase" is unwarranted because it pushes rents out of reach of some tenants and because the units "aren't worth" the prices being asked.

"I don't mind paying a decent rent, but it's getting out of hand, and it's time for it to be put to a stop," Edward Dennis Jr., president of the tenants' council said. "As long as the owners get their way, they will continue doing this."

Last night, the 25 residents in attendance sat on a grassy hill behind the complex's rental office on Livingston Street and reviewed the aspects of the proposed increase.

Interstate Realty Management Co., which maintains and oversees the property of 111 units and about 275 tenants, notified tenants of the proposed increases in a May 1 letter.

According to the letter, monthly rent for a one-bedroom unit would be raised to $345 from $283; for a two-bedroom apartment to $385 from $322, and for a three-bedroom apartment to $419 from $357.

However, because rents at the housing complex are subsidized by the U.S. Department of Housing and Urban Development, the increase must be approved by HUD before it becomes effective.

Reasons tenants said they were given for the increase by the management company include repairs and increased operating, maintenance, administrative, tax and insurance costs.

The main reason given is repairs, yet the company has not been doing anything, tenant attorney David A. Scholl said.

Scholl said across-the-board rent increases of $30 a month were granted by HUD to Interstate Realty in April and November of 1983. A $7 increase was granted in August 1984 when a $30 increase was requested.

At that time, HUD stated the "rent increase is sufficient to cover both projected operating costs and an increased in the 'reserved for replacement' deposits."

HUD stated that previous "rent increases were not actually utilized" to cover expenses and that the company should "re-evaluate the owner-imposed moratorium on withdrawals from the reserve."

It is as if management is asking for twice the normal increase and hoping to settle for two-thirds of that amount, Dennis said. "They want their cake, and they want to eat it, too," he added.

Dennis said no one is bringing this to people's attention.

"That's why we got this committee together," he said. "They're taking your money and ripping you off. Unless we say something, they will continue to keep taking people's money."